Oil helps keep Saskatchewan budget in black as potash and other revenues fall

REGINA – Falling revenue from potash, taxes and Crown land sales is hitting Saskatchewan’s bottom line, but more oil money is keeping the books in the black so far.

The Saskatchewan government says in its first-quarter budget update that stronger oil prices are expected to increase revenue by $92 million.

But revenue from Crown land sales is forecast to drop $45.6 million, potash revenue is expected to be down $21.3 million and tax revenue looks to fall by $15 million from March budget projections.

The province still says there will be a surplus of $33 million — but that’s about half of what was estimated in the budget.

The budget update comes after TD Economics and RBC both said Saskatchewan’s economic growth is likely to take a hit from the turmoil in the potash industry.

Finance Minister Ken Krawetz (KRAH’-vetz) says it’s too soon to know the specific impact.